Massillon's general fund deficit slashed by 58 percent

Massillon's $2.6 million general fund shortfall has been cut to about $1.1 million, or by 58 percent, to end 2013.

BY Steven M. GrazierIndependent staff writer

A major chunk of the city's general fund deficit has been erased.

Mayor Kathy Catazaro-Perry said Wednesday night during her State of the City address to City Council that an approximately $2.6 million shortfall in the fund has been reduced to about $1.1 million — 58 percent.

"This is big news for our city heading into the new year," the mayor said. "It's an exciting time to turn the corner and take the city to the next step."

STILL WORK TO DO

The deficit reduction was attributed partially to an 8.4 percent increase in city income tax revenue in 2013 — $12.8 million — compared to the previous year of $11.8 million. In addition, several non-recurring funds, such as inheritance tax, a workers compensation fund rebate, solid waste department sale proceeds — from sold garbage trucks and trash receptacles — and solid waste department capital funds totaling $667,000 were factors.

"These things allowed us to get a lot further ahead than what it could have been," said city Budget Director Ken Koher. "It's a lot of good news but a lot of work ahead."

The city benefited last year from a Federal Emergency Management Agency Staffing for Adequate Fire & Emergency or SAFER grant, which paid the salaries of 10 firefighters, Koher said. The overall $1.7 million grant expires in October 2014.

Koher said the city will have to find ways to make up for the dollars provided by the SAFER grant prior to its expiration. He said some ideas could come from the mayor's soon-to-be-released fiscal recovery plan.

Catazaro-Perry said Thursday she will offer a fiscal recovery plan to city council later this month, which will detail options to further reduce the general fund debt and help get the city out of "fiscal emergency."

General fund dollars go toward city employees' paychecks, insurance and pensions, municipal court salaries and contracts, maintaining city buildings and paying for gas, electric and water for the facilities, in addition to fuel and maintenance of city vehicles.

An approximately $1 million payment to police and fire pensions was made in late 2013, which significantly cut into the general fund deficit, according to Councilman Ed Lewis, R-Ward 6, who chairs the city's finance committee.

"We're heading in the right direction," Lewis said. "We want to work with the mayor and her administration to make good (economic) strides."

Lewis cited Catazaro-Perry's successes in getting businesses, such as the H.J. Heinz Co., Premier Building Solutions and Quest Specialty Chemicals, to invest in Massillon.

"She's done a great job getting some businesses to the city, which has helped," he said.